How Large Are Global Energy Subsidies?
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Summary:
This paper provides a comprehensive, updated picture of energy subsidies at the global and regional levels. It focuses on the broad notion of post-tax energy subsidies, which arise when consumer prices are below supply costs plus a tax to reflect environmental damage and an additional tax applied to all consumption goods to raise government revenues. Post-tax energy subsidies are dramatically higher than previously estimated, and are projected to remain high. These subsidies primarily reflect under-pricing from a domestic (rather than global) perspective, so even unilateral price reform is in countries’ own interests. The potential fiscal, environmental and welfare impacts of energy subsidy reform are substantial.
Series:
Working Paper No. 2015/105
Subject:
Consumption Energy prices Energy pricing Energy subsidies Non-renewable resources
English
Publication Date:
May 18, 2015
ISBN/ISSN:
9781513532196/1018-5941
Stock No:
WPIEA2015105
Pages:
42
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